Snap-on

Snap-on (SNA - Analyst Report) has performed extremely well against the broader market particularly during the recent turbulence and after delivering a strong second quarter.

Stronger Fundamentals

Analyst expectations are up for SNA. Full-year 2008 forecasts for earnings of $4.09 per share are above last month’s $4.05. The company’s annual earnings per share are projected to grow by 27% from 2007. Shares of Snap-on are up by more than 5% over the past 3 months, while the Dow sits in negative territory over the same time frame.

A Solid Quarter

Snap-on’s second-quarter earnings per share of $1.15, surpassed the year-prior 90 cents and topped the consensus estimate 10%. SNA’s earnings per share were ahead of analyst expectations by an average of 16% over the past 5 consecutive quarters. Sales increased by 7.6% on a year-over-year basis.

”Snap-on's second quarter operating performance evidences continued achievements in our strategic diversification and growth initiatives," said Nick Pinchuk, Snap-on's president and chief executive officer. "Despite the continued macroeconomic challenges, the strength of our global and diverse customer base and the value created by our innovation and rapid continuous improvement processes combined to deliver significant sales and profit improvements. My thanks to our associates and franchisees for their ongoing support and for their crucial roles in achieving another encouraging quarter."

Competitive Income

The company’s dividend yield of 2.1% remains very competitive when measured against the industry average of 0.9%.

In early June, Snap-on paid out a quarterly common stock dividend of 30 cents per share.

Read our Aug 06, 2008 analysis.

Last Week's Growth and Income Zacks Rank Buy Stocks

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